Home Loan EMI Calculator
A home loan EMI calculator helps you estimate the fixed monthly payment you need to make to repay a housing loan over a chosen tenure. This monthly payment, known as EMI (Equated Monthly Instalment), includes both principal repayment and interest.
In addition to the monthly EMI, the calculator shows the total interest payable over the entire loan period and the total amount you will repay to the lender. This gives a clear picture of the long-term cost of the loan, not just the monthly burden.
How the Calculation Works
Home loan EMIs are calculated using a standard amortization formula. The interest rate is converted into a monthly rate, and the EMI is computed such that the loan is fully repaid by the end of the tenure through equal monthly payments.
While the EMI amount remains constant, its composition changes over time. In the initial years, a larger portion of each EMI goes towards interest. As the outstanding loan balance reduces, the principal component gradually increases.
- Interest is calculated on the outstanding loan balance
- EMI amount remains fixed for the full tenure
- Early EMIs are interest-heavy; later EMIs are principal-heavy
- Loan tenure is expressed in months internally
Inputs and Options Explained
The calculator uses three core inputs that fully define a standard home loan repayment schedule.
- Home Loan Amount — The principal borrowed from the lender. This is the base amount on which interest is calculated.
- Annual Interest Rate (%) — The nominal yearly rate charged by the lender. This is converted into a monthly rate for EMI calculation.
- Loan Tenure — The total repayment period. You can enter this in years or months, both of which represent the same duration internally.
Examples and Edge Cases
Longer tenures reduce the monthly EMI but significantly increase the total interest paid over the life of the loan. Shorter tenures increase the EMI but reduce the overall cost of borrowing.
The EMI shown is rounded to the nearest rupee for readability. However, the total payment and total interest are calculated using the exact EMI value internally. This avoids small cumulative rounding errors over long tenures.
Who Should Use This Tool
This calculator is useful for anyone planning, reviewing, or comparing home loans under standard EMI structures.
- Home buyers planning affordability
- Borrowers comparing tenure and interest options
- Anyone analysing long-term loan costs
Related Concepts
Home loan EMIs are closely tied to a few core lending concepts that help interpret repayment behaviour.
- Amortization — The gradual reduction of loan balance through scheduled repayments.
- Principal — The original loan amount borrowed.
- Interest — The cost charged by the lender for borrowing money.
To evaluate other loan types, you can also use a General EMI Calculator or explore investment-side planning with a SIP Calculator.